 Netflix has powered through more than a few major public relations disasters over the past decade, from the serious (remember Qwikster?) to the slightly less urgent (like when the company began letting folks watch sped-up content). Some fade away quickly with the platform doing little more than issuing a statement (see last summerâs right-wing panic over Cuties), but others linger on. So far, the uproar over Dave Chappelleâs newest comedy special seems to be falling into the latter category, with this week shaping up to be a major inflection point. The events are serious enough that weâre putting out a bonus Buffering to examine where things stand now and whatâs next. Weâll be back Thursday with another newsletter and update on the Chappelle crisis. âJoe Adalian |
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| | Netflix co-CEO Ted Sarandos. Photo: Kevin Dietsch/Getty Images | |
Netflix co-CEO Ted Sarandos last week said Dave Chappelle was responsible for supplying the streamer with its âstickiestâ and most-watched stand-up special ever, 2019âs Sticks & Stones. But while the comic may be good at driving viewership, his obsession with trans people has plunged Netflix into one of its biggest PR nightmares ever and sparked a major internal backlash among employees angered by their companyâs continued support of Chappelle. All of a sudden, the Qwikster debacle from a decade ago seems almost quaint. |
In fairness to Netflix, the response to that 2011 mess represented a far more existential threat than anything that has happened so far. For starters, even though the streamer is being pilloried by critics and in certain quarters of social media, there hasnât been any substantial, or at least immediately measurable, fallout from the companyâs decision to stream and vocally support The Closer, the controversial special that features Chappelleâs latest transphobic rant. Netflix stock has not tanked, and no major consumer boycotts of the service have been announced, at least not yet. |
Instead, the epicenter of the current crisis is within the companyâs own (largely virtual) walls. Staffers angered by the events of the past two weeks feel the company has breached their trust: After Sticks & Stones came out, Netflix execs seemed to promise the company would handle future Chappelle specials with more caution and consideration, according to a report from Bloombergâs Lucas Shaw. That clearly didnât happen. Frustrated, some employees have called for a daylong walkout this Wednesday, while others have taken to leaking confidential internal data about Netflix production costs and viewership. One was even fired for leaking, a move that resulted in even more bad PR for the company. (Netflix hasnât said who the leaker was, but The Verge reported the staffer was Black, trans, and pregnant.) |
While the ripple effects of the Chappelle controversy have so far been mostly limited to internal Netflix affairs, itâs not impossible to imagine the scandal eventually having an impact on the companyâs bottom line. The next few days could be key: One of the goals of Wednesdayâs walkout is to raise awareness of the issue among the wider public and perhaps put pressure on Netflix to take action to address the concerns of trans employees and allies. Here are some key unanswered questions ahead of tomorrowâs work stoppage: |
 Will Sarandos and Netflix founder and co-CEO Reed Hastings address the Chappelle situation during this weekâs quarterly earnings report? Netflix reveals its third-quarter financial results on Tuesday afternoon, and as part of that process, key execs at the streamer will field questions from a Wall Street analyst. Because reporters wonât be involved, itâs not unthinkable that the whole controversy goes unmentioned. But if Sarandos and Hastings want to cool things down ahead of the Wednesday work stoppage, this would be a good venue: Itâs the first time either will be on-camera at a major event since the backlash started. Of course, given how execs at Netflix have made things worse with every public utterance, they might simply be best served by saying nothing. |
 What will the walkout look like, and how will we know how many employees participated? While some Netflix staffers are back in their offices, most are still working remotely. Trans activist Ashlee Marie Preston has called for Netflix staffers and outside supporters to gather outside the companyâs Hollywood headquarters on Wednesday morning. Per an Instagram post announcing details of the event, a âlist of firm asksâ will be made to Sarandos, while some celeb supporters are expected to participate in a taped PSA. But Netflix is a global company, so much of Wednesdayâs walkout will likely take the form of a virtual protest with support seen online as participants post their objections on Twitter and other social-media platforms. |
 Will any of Netflixâs major talent partners lean on the company? At the moment, very few major stars or producers with deals at Netflix have publicly spoken against the streamerâs decision to platform Chappelleâs anti-trans rhetoric. But what happens if, during Wednesdayâs planned employee walkout, a bunch of Netflix talent â folks with big followings â starts posting condemnations of Chappelle and Netflix? Until now, Sarandos has positioned himself as a champion of artistic integrity and a defender of free speech. That narrative could shift if many of the people Sarandos believes he is fighting for come out and say, no, actually, this isnât about âfreedomâ after all. |
Of course, even if a slew of boldface names suddenly start expressing solidarity with Netflix employees, it probably wonât have much of an impact unless they back it up with threats to stop working with the streamer. If that happens, Sarandos may suddenly become a bit less strident with his âdefend Dave at all costsâ philosophy. |
 Short of pulling The Closer from Netflix, what can Sarandos do to address the concerns of staffers upset by the companyâs actions? While one civil-rights group, the National Black Justice Coalition, has asked the streamer to remove Chappelleâs latest special, it is worth noting that others, including GLAAD, have not. And Netflix staffers who have spoken off the record to reporters about the issue have held back from asking the company to deplatform Chappelleâs work. Instead, it seems what some employees want is an explanation of why the backlash to Sticks & Stones didnât prompt Netflix execs to better prepare for the response to The Closer. |
Indeed, while Netflix has a well-earned reputation for giving top creators such as Ryan Murphy and Shonda Rhimes near-total creative control, the company still engages in conversations with talent and does make its opinions known. Nobody expects that Netflix would ever give a stand-up (even one less powerful than Chappelle) creative notes about a comedy special or demand to see an outline before it was filmed. But the company could have, in theory, asked Chappelle to meet with members of the trans community â or perhaps even Netflixâs own trans employees â to engage in a dialogue about why they believe his speech puts them in danger. Or, barring Chappelle himself participating in such a conversation, Sarandos and other Netflix execs might have met with employees to discuss what steps could be taken before The Closerâs release to the public. Perhaps itâs naïve to think any sort of middle ground could be found, but given what happened after 2019, itâs a bit of a head-scratcher as to why senior Netflix management seems to have chosen âdo nothingâ as the best course of action. |
Even more mystifying: Having made the decision to release The Closer despite knowing what the internal reaction would be, Sarandos then issued not one but two memos positioning himself as an artistsâ-rights warrior while dismissing the opposition inside the company as a mere âdisagreement.â Rather than taking time to engage in an extended dialogue with the staffers who were upset by the Chappelle special, Sarandos twice decided to offer lectures about why his course of action was the proper one. Thatâs his right as co-CEO, of course; Netflix is not a democracy. And it is worth noting that on Friday, after both memos were leaked, Sarandos did participate in a real conversation with staffers via a town-hall meeting, one in which he took âpointed questionsâ from upset employees. |
But such damage-control efforts wonât easily erase the harm already done to the tech giantâs relationship with trans staffers. Netflix is a company that believes its workplace culture is so radically different, so much better than average, it posts a detailed outline of its philosophy on its public website. And one of the core tenets of the Netflix Way is that employees should always âlisten well and seek to understand before reacting.â I am not privy to every meeting and conversation Sarandos has had with staffers about the Chappelle situation, but it sure seems as if the Netflix boss didnât try to understand their objections before he responded. The question now: Will Sarandos put in the work to better understand why so many of his employees â and many of his customers â are so angry? |
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